FINANCE|financing and investment
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- derivative product company | DPC
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- Definition special-purpose entity created to be a counter-party to financial derivate transactions Reference "Investopedia > derivative product company, http://www.investopedia.com/#axzz1nDkgJ1l0 [16.5.2012]"
- Comment A derivative product company will often originate the derivative product to be sold; as well, they may guarantee an existing derivative product or be an intermediary between two other parties in a derivatives transaction. Derivative product companies cater mainly to other businesses that are looking to hedge risks that can include currency fluctuations, interest rate changes and contract defaults.